NKA Accounting Solutions is a financial and accountancy site that addresses to the current financial and economic developments in India.
The site also posts useful information for the accountancy professionals and students pursuing Chartered Accountancy in India.

January 23, 2009

Want to Fight Job Crunch- Just Reduce the Expected Salaries a Bit

We asked our readers about their views on current job crunch. Our question was:Will decreasing the salary packages would reduce the job crunch?Majority of the participants (55%) were in favour of reducing the initial salary packages as a step to raise the demand and match it with the supply. 22% of the voters felt that decreasing the salary packages would not help in tackling job crunch. Only a minority of the voters were not sure. Some of them thought that it might do the job while the rest chose the option of ‘can’t say’.Analysis:As we can see that in the current recessionary period, every one of us is focusing on cost reduction and building up as much cash inflows as possible. Human resource is one of the major aspects here. Thus every employer would be willing to reduce its human resource costs. However, this would not mean that they want to reduce the number of employees. They just want to reduce the cost per employee/productivity. Recently the companies in the BPO sector in India adopted the method of increasing the working time of employees to achieve the same.Moreover, as inflation was on a high over the past few years, everything related to this was also increasing. So were the salaries. Now since inflation is deflating (came down from 12% in August 2008 to les than 6% in January 2009), the other things are ought to come down.

PS: The poll results depict the opinion of the people who voted on this poll. It should not be considered as an opinion of any particular segment or mass.Also Read: